Is The Logistics Market Too Overcrowded

Logistic companies play an important role in the market as without them products would not be seen on the shelves. From production origin, products in the market are stored, picked, possibly reworked and packaged and then transported to their destination. Logistics plays the core part in this process to make it all happen.

These goods come in different forms, volumes, and weights. This is the reason why the logistics market is taking centre stage in its growing number as it is formally recognised as the key to keeping all trades having continuous productivity. Cargos are transported by land, air or sea, depending on the accessibility. Thus, airports, sea ports, train terminals or other freight gateways are essential centres for the logistics market.

Increased Transportation Demands

With the increasing transport demand of both business and consumers nowadays, a unified transport strategy has been required which opens the eyes of logistic entrepreneurs to hop in and start on this venture with a goal of long-lasting and productive commerce.

On the other hand, in support to this increasing crowd in the market of logistics, government has been doing their part in focusing the development of transport infrastructure for a better and more convenient conveyance of goods. Like in land transportation, they are making improvements in the rail network capacity whilst having the next move on airport expansion capacity too. Developments have also been put in place to improve transport links for road haulage transportation.

Since 2010, every country’s logistic records just like in UK have increased to date. However, they have been facing some difficulties with this increase in the number of logistics trade with respect on the number of licensed vehicle operators who are in-charge of transporting the goods.

Cost Effective Warehousing and Distribution

Every commercial sector in the country depends on logistics companies to provide them with the efficiency and cost-effectiveness of storage, handling and goods delivery merely considering it as the backbone of the economy.

Clearly based on surveys, there is already an increasing demand of goods transportation making the logistic market grow. In China, their leading growth has continued meeting their government’s target for annual development. On the other hand, countries including India, Indonesia and Turkey are said to be affected by the cyclical economic slowdown yet, are still persistent to cover up on their deficits. But in Europe, it continues to turn even more positive.

The risk of the Euro Zone flare up in the UK is making the consumer become liable to the country’s increasing utility costs and constraints which is still at risk of inflation. But this goes hand in hand with creating a higher demand in goods for their consumers helping the economy to recover.

With the overcrowding effect on the logistics market, this presents companies involved with more opportunities handling supply chain management business, all from origin to their destination. With the varied specialties many different logistics companies and 3PL’s offer, such as some focusing on ecommerce customers basing their core business around order fulfilment, including pick and pack and courier services, some targeting the bonded clients for the import export market and others marketing their services more for ambient, hazardous or chilled goods for general storage and freight management, we think there is room for all the logistics companies in the UK, well, all the experienced ones that take pride in their professionalism and expertise at least.

For more details on how to manage your end to end supply chain effectively for your business and advice on third party logistics services offered by DMG Freight Services, please contact us directly on 01279 452468.